SUMMARYA new generalized FEM is introduced for solving problems with discontinuous gradient fields. The method relies on enrichment functions associated with generalized degrees of freedom at the nodes generated from the intersection of the phase interface with element edges. The proposed approach has several advantages over conventional generalized FEM formulations, such as a lower computational cost, easier implementation, and straightforward handling of Dirichlet boundary conditions. A detailed convergence study of the proposed method and a comparison with the standard FEM are presented for heat transfer problems. The method achieves the optimal rate of convergence using meshes that do not conform to the interfaces present in the domain while achieving a level of accuracy comparable to that of the standard FEM with conforming meshes. Various application problems are presented, including the conjugate heat transfer problem encountered in microvascular materials.